Bitcoin Spot Volume Hits 7-Year Low Amid Leverage Frenzy
The Bitcoin (BTC) spot trading volume has reached a 7-year low, and analysts are warning of potential late-stage bear market conditions. According to recent data, the number of investors buying and holding BTC with real money is dwindling.
This decline in spot demand comes as futures open interest continues to rise, indicating that leverage, not actual buying power, is driving price movements. This situation is reminiscent of past rallies, which have rarely lasted long-term, as seen in the April episode.
The short-term holder base has shrunk significantly, with coins held for under 6 months now accounting for only 23.6% of the total supply. In contrast, long-term holders are accumulating more BTC, and selling pressure is easing.
In this context, the recent weakness in jobs numbers and cooling inflation may have pushed the September rate-hike odds to 67.6%. However, heavy Treasury issuance continues to keep long-end yields elevated. Meanwhile, Bitcoin has maintained its price range of $62K to $65K while US equities hit record highs.